Kogan.com (KGN) H2 2025 earnings summary

Executive summary

• FY25 saw Gross Sales rise 15.1% to $930.9 million, Revenue up 6.2% to $488.1 million, and Active Customers up 35% to 3.5 million, driven by increased marketing investment.

• Platform-based Sales Revenue grew 24.4% to $111.9 million, now representing nearly 60% of group gross sales and over two-thirds of Kogan.com gross sales.

• Free Cash Flow increased 40% to $32.4 million, supporting capital returns to shareholders.

• Kogan.com was the main driver of group performance, while Mighty Ape faced operational challenges post-platform migration.

• Net loss of $39.5 million due to a one-off, non-cash $46.3 million goodwill impairment related to the Mighty Ape acquisition.

Financial highlights

• Gross Profit increased 12.7% to $189.9 million, with Gross Margin up 2.3pp to 38.9%.

• Adjusted EBITDA was $36.8 million (7.5% margin), down 8% YoY due to Mighty Ape's underperformance and higher costs.

• Kogan.com gross sales up 20% to $794 million, gross profit up 21% to $156 million, adjusted EBITDA up 13% to $37 million.

• Mighty Ape gross sales down 7% to $137 million, revenue down 16.7% to $122.1 million, gross profit down 15% to $34 million, with a small adjusted EBITDA loss.

• Cash at year-end was $42.1 million, with no debt.

Outlook and guidance

• No formal earnings guidance for FY26; group adjusted EBITDA margin expected in the 6%-9% range, improving in the second half as Mighty Ape recovers.

• Platform-based sales expected to maintain strong contribution; focus on operational optimization and Mighty Ape turnaround.

• July 2025 trading: Group Gross Sales up 26.5% YoY, Kogan.com gross sales up 32%, revenue up 11.4%; Mighty Ape gross sales down 3.5%, revenue down 20.9%.

• Medium-term margin ambition is 8%-12%, with long-term target above 20% as platform-based sales grow and products reach break-even.

• Long-term goal for Platform-based Sales to exceed 65% Adjusted EBITDA margin.